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2024 09 09 CC Minutes Sp MtgCALL TO ORDER CITY COUNCIL MINUTES SPECIAL MEETING MONDAY, SEPTEMBER 9, 2024 A special meeting of the La Quinta City Council was called to order at 3:47 p.m. by Mayor Evans. PRESENT: Councilmembers Fitzpatrick, McGarrey, Pena, Sanchez, and Mayor Evans ABSENT: None PLEDGE OF ALLEGIANCE Mayor Evans led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA — None CONFIRMATION OF AGENDA — Confirmed CLOSED SESSION 1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATION; PURSUANT TO PARAGRAPH (1) OF SUBDIVISION (d) OF GOVERNMENT CODE SECTION 54956.9; CASES NAMES AND NUMBERS — MULTIPLE (listed below, all in U.S. Bankruptcy Court, District of Delaware) CASE NAME: CASE NUMBER SilverRock Development Company, LLC 24-11647 SilverRock Lifestyle Residences, LLC 24-11648 SilverRock Lodging, LLC 24-11650 SilverRock Luxury Residences, LLC 24-11652 SilverRock Phase I, LLC 24-11654 RGC PA 789, LLC 24-11657 COUNCIL RECESSED THE OPEN SESSION PORTION OF THE MEETING AND MOVED INTO CLOSED SESSION AT 3:51 P.M. MAYOR EVANS RECONVENED THE OPEN SESSION PORTION OF THE CITY COUNCIL MEETING AT 5:46 P.M. WITH ALL MEMBERS PRESENT REPORT ON ACTION(S) TAKEN IN CLOSED SESSION: City Attorney Ihrke reported no actions were taken on Closed Session Item No. 1 that require reporting pursuant to Government Code section 54957.1 (Brown Act). CITY COUNCIL MINUTES SPECIAL MEETING Page 1 of 2 SEPTEMBER 9, 2024 The authorization of the City Attorney with the coordination of the City Attorney's Office to defend and protect the interests of the City in the multiple bankruptcy cases filed by SilverRock Development Company and its responsive affiliates as reported out for Closed Session Item No. 2 from the August 6, 2024, Council meeting remains in place. CONSENT CALENDAR — taken out of Agenda order »> 1. RATIFY AND APPROVE PROFESSIONAL SERVICES AGREEMENT WITH WHITEFORD, TAYLOR & PRESTON, LLP TO REPRESENT THE CITY AS SPECIAL COUNSEL AND LOCAL DELAWARE COUNSEL IN CONNECTION WITH THE SILVERROCK DEVELOPMENT COMPANY BANKRUPTCY CASES At the request of Council, City Manager McMillen explained on August 5, 2024, SilverRock Development Company and its affiliates filed multiple bankruptcy petitions in the United States Bankruptcy Court for the District of Delaware, thus the City retained Whiteford, Taylor & Preston, LLP as special local bankruptcy counsel, per the City Attorney's recommendation and as required by federal court rules for appearing before the Delaware court, to represent the City in the bankruptcy proceedings, which are moving very quickly with a hearing already held on September 3, and another one scheduled for September 11, 2024; and noted the item before the Council is to ratify and approve the agreement, which was executed on August 17, 2024. MOTION — a motion was made and seconded by Councilmembers Pena/Fitzpatrick to ratify and approve professional services agreement with Whiteford, Taylor & Preston, LLP to represent the City as special counsel and local Delaware counsel in connection with the SilverRock Development Company bankruptcy cases. Motion passed unanimously. ADJOURNMENT There being no further business, a motion was made and seconded by Councilmembers McGarrey/Sanchez to adjourn at 5:49 p.m. Motion passed unanimously. Respectfully submitted, MONIKA RADEVA, City Clerk City of La Quinta, California CITY COUNCIL MINUTES SPECIAL MEETING Page 2 of 2 SEPTEMBER 9, 2024